ERX vs QQQ
Direxion Daily Energy Bull 2X ETF vs Invesco QQQ Trust, Series 1
Which is better, ERX or QQQ?
Trading-Leveraged Equity against Large Cap Growth.
QQQ has a lower expense ratio. ERX led over 1Y and 5Y, QQQ over 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 75.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | ERX | QQQ |
|---|---|---|
| Expense Ratio | 0.91% | 0.18%Best |
| AUM | $257M | $483.5B |
| Dividend Yield | 1.30% | 0.44% |
| Holdings | 29 | 107 |
| YTD Return | +94.26%Best | +16.87% |
| 1Y Return | +105.22%Best | +22.98% |
| 3Y Return (annualized) | +19.36% | +24.98%Best |
| 5Y Return (annualized) | +40.75%Best | +14.39% |
| Volatility (annualized) | 65.5% | 17.7%Best |
| Max Drawdown | - | -35.1% |
| $10,000 over 5 years | $55,239Best | $19,586 |
| Top 10 Weight | 75.7% | 46.5%Best |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) |
| Category | Alternative | Equity |
| Style | Trading-Leveraged Equity | Large Cap Growth |
| Inception | Nov 6, 2008 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Nov 6, 2008 to Sep 11, 2026 (17.8 years).
ERX vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
ERX vs QQQ Performance
Direxion Daily Energy Bull 2X ETF (ERX) is an ETF from Direxion Shares ETF Trust and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year ERX returned +105.22% while QQQ returned +22.98%. Year to date, ERX is up 94.26% versus a gain of 16.87% for QQQ.
Over three years, ERX compounded at +19.36% per year against +24.98% for QQQ; over five years the annualized figures are +40.75% and +14.39% respectively. Across the full 18-year window we track, QQQ has the edge at +19.54% annualized vs -7.04%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ERX has been the more volatile fund, with annualized monthly volatility of 65.5% compared with 17.7% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at 0.42. They move together some of the time, and apart the rest.
Fees and Cost Over Time
ERX charges 0.91% per year while QQQ charges 0.18%. On a $10,000 position that is $91 vs $18 annually, a gap of $73 per year that compounds over a long holding period. On income, ERX currently yields 1.30% against 0.44% for QQQ.
Holdings Overlap
4.5% of ERX's money is in holdings QQQ also owns. 0.5% of QQQ's money is in holdings ERX also owns.
ERX and QQQ share little of their money.
2 positions in common, counted across the 23 positions we hold weights for in ERX and 102 in QQQ, against full books of 29 and 107.
What only one of them owns
Our book lists 93 positions for QQQ that do not appear in our book for ERX (96.5% of the fund), and 20 for ERX that do not appear in QQQ (94.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of ERX and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ERX or QQQ?
ERX has an expense ratio of 0.91% while QQQ charges 0.18%. QQQ is the cheaper option, by $73 a year on a $10,000 investment.
Which performed better, ERX or QQQ?
Over the past year ERX returned +105.22% vs +22.98% for QQQ, so ERX leads on 1-year performance. Over the longest common window we track (18 years), ERX annualized -7.04% vs +19.54% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ERX or QQQ?
ERX has been the more volatile fund at 65.5% annualized versus 17.7% for QQQ.
Should I hold both ERX and QQQ?
ERX and QQQ have a monthly-return correlation of 0.42, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ERX and QQQ?
4.5% of ERX's money is in holdings QQQ also owns. 0.5% of QQQ's is in holdings ERX also owns. They hold 2 positions in common, counted across the 23 positions we hold weights for in ERX and 102 in QQQ.
Which pays a higher dividend, ERX or QQQ?
ERX yields 1.30% while QQQ yields 0.44%, so ERX currently pays the higher dividend yield.
Is QQQ better than ERX?
QQQ has a lower expense ratio. ERX led over 1Y and 5Y, QQQ over 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 75.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.